US shale gas production is among three energy sectors facing high water risks according to a new report.
Energy and consulting firm Wood Mackenzie, alongside the World Resources Institute, has published a report about the rising water risks on the global energy industry.
The three sectors facing high risks, according to the study, are US shale gas production, Chinese coal production and coal-fired power, and crude oil in the Middle East.
In the US, more than 50% of shale and tight gas reserves were located in areas of medium to extremely high baseline water stress, said the report.
It warned that the availability of fresh water in shale areas could decline as a result of competition for water from homes and farms.
The report called on energy companies to tackle their water-driven business risks head on by developing clear water management strategies.
“The future of energy production depends on all stakeholders working together to ensure a water-secure future,” said the report.
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